2022 Full Year Results Q&A
2022 Full Year Results Q&A
Thursday, 23rd February 2023
But we are using the relatively conservative and fundamental economic build-up view of the
four main nutrients into the $170/t as a starting point.
On working capital, De Beers is probably one where we have had a bit of a tick-up in finished
goods and some of that is a view of the team leading into the new year and trying to
position for China reopening. The other is because we have got the transition of Venetia this
year the last cut has been completed and the underground transition will ramp up through
the year. The team are keen to make sure we have got the appropriate mix of diamonds to
take to the market through the year as we go through that transition.
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On Copper, we have the Quellaveco ramp-up, and we see a little bit of build-up there, as well
as there was a fire at the third-party port that we use to take the product out for Los Bronces.
While it is back up and running at lower volumes at the moment, it will take another few
months through the half year. But do not expect an impact on full year sales and certainly no
impact on production from that.
And PGMs is probably the biggest WIP build-up that we have had across the portfolio. Some
of that is the purchase concentrate material that we bring in off of current pricing, impacting
our carrying value and some of it is the Polokwane smelter. That will take a little bit of time to
run out
so even though it is up and running and processing well, you get another pinch point
just this side of the ACP as you balance the right mix and feed through the ACP. So that will
take through 2023 and 2024 to run out.
I would love to get at least half of that back in the near term in terms of working capital
management.
Alain Gabriel (Morgan Stanley): Duncan, first question is on Woodsmith. Do you have a
sense of the operating costs if you were to achieve 5Mtpa and then subsequently 13Mtpa?
And my second question is, outside of Woodsmith, your growth options for the next five years
appear to have stalled, especially around Mogalakwena and the Collahuasi expansion. Can
you give us an update of where we stand on these growth options outside of Woodsmith, just
for the next five years?
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Duncan Wanblad: Operating costs at Woodsmith around the 10Mtpa mark are still at a very
competitive Q1 position on the cost curve. On our growth options, I would not characterise it
as stalling it just takes longer to get these things done. The big projects in there, other than
Woodsmith and Quellaveco, are Collahuasi, Sakatti in Finland and Mogalakwena - so those are
the big options and prizes to go for.
At Collahuasi, quite a lot still has to be done on extracting the optionality that exists, and now
is the time to start getting our heads around how to bring that forward. But permitting is a
very different type of world today than it was just five years ago. The team had to start
working out how to re-permit the water that they were using in their current operations
before they had to get through thinking about how they were going to expand the operation.
Mogalakwena - Natascha has the six pillars of work that she is working through to get her
head around how we were going to expand this what the best deployment of capital was
between the mine and the plant, what the plant configuration could and should look like and
the time to do this. We are bang on track in terms of where we should be with that at this
particular point in time.
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